Pandora’s Box is open, and you can thank Buffalo Sabres center Ryan O’Reilly. O’Reilly has only one 20-goal season and only one season of 60-plus points, and he recently signed a seven-year deal worth $52.5 million, for an average annual value of $7.5 million.

This contract is bad news for the New York Rangers.

The Rangers are poised to provide their No. 1 center, restricted free agent Derek Stepan, a well-deserved long-term contract extension. Prior to O’Reilly’s contract signing, Stepan was rumored to be seeking at least $6 million annually. Now, you can almost guarantee Stepan will seek at least $7 million.

And the reason is simple: O’Reilly has 246 points in 427 career games. Stepan has 252 points in 363 career games. Both players have a similar career arc, and are below age 26. No matter how you slice it, the Rangers will have to pony up the money for Stepan, whether it is for $6.5 million annually or $7.5 million. That is, if new general manager Jeff Gorton is willing to do so.

Gorton has been GM for a week, and he already is in a virtually impossible spot. If he breaks the bank for Stepan, it will leave his team with approximately $3 million in remaining cap space to work with. And that space will be used to give raises to restricted free agents J.T. Miller, Jesper Fast and Emerson Etem. The Rangers are a team ready to win a Stanley Cup. If they require upgrades during the season and especially at the trade deadline, they will have zero space to work with, and it will require trading a key component of the roster in order to make that upgrade.

What’s more, next offseason, they may not have the space to keep at least one of two players critical to their future, Chris Kreider and Kevin Hayes. If the Chicago Blackhawks can trade their best young player in Brandon Saad due to cap issues, you can bet the Rangers will be forced into a similar position down the road.

Conversely, if Gorton decides to trade Stepan, thinking he is not worth $7 million per year, they will need to get the absolute best return possible. In other words, they will need a legit No. 1 center to not only duplicate Stepan’s production numbers, but cost less than Stepan.

Or, Gorton may decide to trade defensemen Kevin Klein or Keith Yandle solely for the purpose of freeing up the space to sign Stepan. Klein is the most likely option, with top prospect Brady Skjei poised to crack the NHL roster next season, and with Yandle being a key to next season’s success, especially on the power play.

Gorton needs to explore all of these options. No matter what his decision is, it will have a major impact on the Rangers now and in the future. If he keeps Stepan, the team’s cap space is non-existent, and roster upgrades for a Cup run will be difficult. If he trades him, the Rangers may face a transition year in which they don’t contend for a Cup.

Was Jeff Gorton truly worthy of his promotion? We’ll find out soon.

Matt Stillwell is a New York Rangers contributor for www.rantsports.com. Follow him on Twitter @MattNYR12!